TOWN short trade on trendline break Short

Towne BankNASDAQ

Description

⋅ May 12, 2020 7:40 PM

TOWN broke its recent upward trendline today, creating a short trade possibility with a small risk and high reward.

Factors leading to the decision:

Major trend is down
Minor trend was up, and today price broke and closed below it
20-ma was recently lost, pulling moving average traders off the sidelines
The recent high fractal pattern is also at the 20-ma and offers a perfect technical spot for a tight stop

As always, use a tight-stop and if it rips down, let it run and trail stops behind.

⋅ May 26, 2020 6:15 PM

This trade was stopped out for 1.3 points